Nigeria Personal Income Tax (Amendment) Act 2011: Implications for Tax Administration and Enforcement

Abstract

This paper critically reviews the implications of Nigeria Personal Income Tax (Amendment) Act 2011 as they affect personal income tax administration in the hands of tax authorities as well as employers, employees and individuals as it relates to compliance issues of payment, collection, and remittance of personal income tax. This explorative study relied on the review of relevant literature on Personal Income Tax Administration in Nigeria and the reactions of stakeholders on the new income tax  amendment legislation. The major implication of the Amendment Act is that it provides good combination of a relaxed tax regime that is more tax- payer- friendly than the principal Act, while also specifying stricter tax collection and enforcement regulations that prescribe stiffer penalties and controls over tax payments and remittance defaults. Against the   background of these implications the involvement of professional tax and accounting bodies, and tax authorities in the education and enlightenment of employers and tax payers are considered imperative.

Key Words: Personal income tax administration; Personal Income Tax (Amendment) Act 201; Tax collection and enforcement regulations